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The Halo model is a revolutionary approach to fitness that provides a unique workout experience. Developed by Industrious Gym, it offers clients their own dedicated space called a Halo, which contains all the necessary equipment for a personalized workout. This in-place model eliminates the need for clients to move around the gym, making the workout more efficient and focused. The Halo model also reduces confusion and the risk of accidents by providing clear and organized stations. With a strong emphasis on customer experience and community building, the Halo model proves to be an effective and popular method of delivering group fitness classes.
Industrious Gym has recently expanded its business through franchising, offering entrepreneurs the chance to open their own fitness facilities based on the Halo model. The first two franchises will be located in Bellevue and West Seattle. These franchisees are individuals who have been part of the Industrious team and have proven themselves to be dedicated and successful. By becoming franchise owners, they can take their passion for fitness to the next level and spread the Industrious brand in new areas. The franchising opportunity provides a pathway for professional growth and entrepreneurship, while maintaining a strong connection to the Industrious family.
Industrious Gym places a strong emphasis on developing leaders within its organization. By promoting from within and offering career advancement opportunities, the gym cultivates a team of dedicated and motivated employees. The departure of top employees to open new franchises is seen as a positive aspect, as it creates room for others to step up and grow into leadership roles. The focus on people development ensures a sustainable and thriving business model, where employees have the opportunity to rise within the company and contribute to its success.
Industrious Gym projects that franchisees can achieve profitability within two years, with a margin of 15-20%. While specific exit strategies and timelines have not been extensively explored, a realistic estimation suggests that a successful exit could occur between 5 to 10 years into franchise ownership. Established franchise systems in the industry are typically valued at around 10 times their earnings before interest, taxes, and amortization (EBITDA). The Halo model, along with the Industrious brand and community, offer a promising foundation for long-term success and potential investors seeking a solid return on their investment.
Using a microphone in coaching provides several benefits for both the clients and the coaches. First, it allows the coach's voice to be heard clearly by everyone in the class, ensuring that instructions and cues are effectively communicated. This eliminates the need to gather everyone together, interrupt the workout, or speak loudly over the music. Second, it enhances the client experience by creating a better class flow and momentum. Clients can focus on their workouts without interruptions and can hear important cues and coaching points. Third, it increases the professionalism of the gym and creates a more sophisticated and organized atmosphere. Finally, it enables coaches, particularly those with higher-pitched voices, to be heard throughout the space, ensuring that clients receive clear and concise instructions. Overall, using a microphone facilitates effective communication, improves the client experience, and enhances the overall gym environment.
When selecting real estate for Industrious gyms, a few key factors come into play. Firstly, the space should have four walls and be clean and tidy. The ideal location is often in a high-foot-traffic area to attract potential clients. The gym's visibility and proximity to amenities like grocery stores or shopping centers can also positively impact foot traffic. While stand-alone buildings are desirable, they can be challenging to find in certain markets, particularly high-cost urban centers. The presence of HVAC systems may vary depending on the location, but adaptability is key, as real estate options can differ. Overall, Industrious seeks spaces that support its branding and offer functional layouts for its unique gym model.
Programming plays a crucial role in Industrious gyms, allowing for engaging, effective, and enjoyable workouts. The system is designed to eliminate barriers, simplify workouts, and ensure clients achieve their fitness goals. Emphasizing simplicity and elegance, the programming helps clients maintain consistency, experience progression, and feel successful in their workouts. With the ability to write cool, engaging, and scalable workouts, Industrious aims to keep clients excited, motivated, and invested in their fitness journey. By removing the limitations of traditional crossfit programming, Industrious can provide a unique and effective fitness experience for its members.
Industrious gyms are open to a variety of market expansions and geographical territories. Markets like Denver, Texas, Florida, Chicago, Indianapolis, and New York City are considered exciting due to their high population density and potential foot traffic. While Industrious prefers markets with a vibrant atmosphere, larger markets can also create brand prominence and accelerate growth. Geographical territories are generous, granting franchisees exclusive rights over a population of around 150,000 for each location. The territories are designed to support both the franchisee's success and the overall growth of the Industrious brand. Site selection that aligns with the brand's prominence and accessibility is crucial for securing the ideal location.
The podcast episode discusses the benefits of the open floor plan model for fitness gyms. The speaker highlights how this model allows for more flexibility in programming and a wider range of movements. It is explained that while some movements like ring muscle ups and handstand pushups may be restricted in a traditional open floor plan, the focus is on incorporating effective and fun exercises like double unders, wall ball shots, and bar-facing burpees. The open floor plan provides more space and allows for a more enjoyable and effective workout experience for gym-goers.
The podcast also emphasizes the importance of protecting intellectual property, specifically in the context of franchising fitness concepts. The speaker shares their experience of patenting their workout station design, which allows for various equipment combinations and offers a unique training experience. The rationale behind patenting is to prevent potential knock-offs and maintain the integrity of the brand. The speaker emphasizes the need to protect intellectual property to safeguard investments, maintain control over customer experience, and defend against potential infringements.
Stephen Hitt is the owner of Industrious in Seattle, WA. A longtime CrossFit affiliate who opted to rebrand during 2020 due to this climate of change occurring within CrossFit HQs leadership ranks. However, it was the role of social distancing and COVID protocols that provided Industrious the opportunity to overhaul its class flow into a "pick a spot" model popularized by yoga and spin.
Branded as "Halos", each Halo provides every member in class with their own 169 sqft spot that comes equipped with their own ergs, squat rack, weights, pullup bar, bench, plyo boxes, and more. This new class flow has taken off within their two locations in the greater Seattle area and has ignited a franchise opportunity that is rapidly catching momentum.
Ladies and Gentlemen, Stephen Hitt.
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